Circular No. 29/2018/TT-BTC guides the preparation, management, and use of funds for the Program to Develop Support Industries.

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to Decree No. 163/2016/NĐ-CP dated December 21, 2016 of the Government detailing and guiding the implementation of certain provisions of the Law on State Budget;

Pursuant to Decree No. 87/2017/NĐ-CP dated July 26, 2017, issued by the Government, stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decree No. 111/2015/NĐ-CP dated November 3, 2015 of the Government on the development of support industries;

Pursuant to Decision No. 10/2017/QĐ-TTg dated April 3, 2017 of the Prime Minister promulgating the regulations on management and implementation of the Program to Develop Support Industries;

At the proposal of the Director of the Administrative and Public Service Financial Department;

The Minister of Finance issues this Circular guiding the preparation, management and use of funds for the Program to Develop Support Industries.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. This Circular guides the preparation, management and use of funds for the Program to Develop Support Industries in accordance with the regulations on management and implementation of the Program to Develop Support Industries issued together with Decision No. 10/2017/QĐ-TTg dated April 3, 2017 of the

2. This Circular applies to the Program management agencies, units primarily responsible for implementing projects under the Program (hereinafter referred to as the Primary Units), and organizations and individuals participating in activities under the Program.

Article 2. Conditions for Primary Units

Primary Units implementing projects under the Program must meet the following conditions:

1. They are state management agencies for the development of support industries or organizations entrusted with the task of implementing projects under the Program.

2. They have the ability to mobilize resources to organize the implementation of projects under the Program.

3. They have specific strategies for developing the industry or support industry products in target markets.

4. They understand the development needs of support industries for supported organizations and individuals.

5. They have experience and capacity in organizing activities to develop support industries.

6. They implement the Program to benefit the business community without profit-making objectives.

Article 3. Sources of Funds for Implementing the Program

1. Central-level funds for implementing the Program come from the following sources:

a) Central budget.

b) Contributions from domestic and foreign organizations and individuals.

c) Other lawful sources as prescribed by law.

2. Local-level funds for implementing the Program come from the following sources:

a) Local budget.

b) Contributions from domestic and foreign organizations and individuals.

c) Other lawful sources as prescribed by law.

Article 4. Principles for Using Funds for Developing Support Industries

1. Central-level funds for implementing the Program ensure activities for developing support industries managed and organized by the Ministry of Industry and Trade for activities and tasks aimed at developing support industries at regional, provincial, and national levels with widespread impact, promoting the development of support industries. Regional, provincial, and national-level support industry activities are defined by the Minister of Industry and Trade.

2. Local-level funds for implementing the Program ensure activities for developing support industries managed and implemented by the People's Committee of the province in accordance with the local strategy and orientation for developing support industries, aiming to develop support industries locally.

3. Organizations and individuals using funds for developing support industries must use them for their intended purpose, in accordance with established procedures, and be subject to inspection and supervision by competent authorities; they must settle accounts for the funds used in accordance with current regulations.

Article 5. Conditions for receiving financial support for the development of supporting industries

Organizations and individuals receiving support from the Program for the Development of Supporting Industries must meet the following conditions:

1. The content of tasks and projects must be consistent with the provisions stipulated in Clause 2, Article 10 of Decision No. 10/2017/QĐ-TTg dated April 3, 2017.

2. Tasks and projects must be approved by the competent authority (the Ministry of Industry and Trade for central-level supporting industry development; provincial, district, and commune People's Committees for local-level supporting industry development).

3. The unit has invested capital or committed to invest sufficient funds to implement the project that has been approved by the competent authority (after deducting the amount of state budget support).

4. A commitment from the implementing unit of the supporting industry project that it has not received any funding from the state for the same content, and an assessment by the approving authority.

5. In the two years prior to submitting the application, the entity does not fall into any of the following situations: having led a supporting industry development project that was accepted at the level of "unsatisfactory"; delivering products late without approval from the Ministry of Industry and Trade; using project funds for supporting industry development contrary to current regulations.

Chapter II
CONTENT AND AMOUNT OF SUPPORT

Article 6. Connecting and supporting enterprises in the supporting industry sector to become suppliers of products to domestic and foreign customers; promoting foreign investment in the supporting industry sector

1. Maximum support up to 100% of the costs:

a) Costs for establishing and promulgating national technical standards according to Circular Joint No. 145/2009/TTLT-BTC-BKHCN dated July 17, 2009 of the Ministry of Finance and the Ministry of Science and Technology on managing and using funds to ensure activities related to the establishment of national standards and technical regulations.

b) Organizing evaluation and confirmation of the capacity of supporting industry enterprises: Costs for researching and building evaluation criteria and indicators. Costs for organizing conferences to announce evaluation results. Costs for evaluating enterprise capacity: Maximum support not exceeding 7 million VND per enterprise.

c) Consulting and technical support for supporting industry enterprises.

d) Consulting and support for enterprises investing in the supporting industry sector.

đ) Evaluating and recognizing enterprises with international-level capabilities and scale: Costs for researching and building evaluation criteria and indicators. Costs for organizing conferences to announce evaluation results. Costs for evaluating enterprise capacity: Maximum support not exceeding 7 million VND per enterprise (domestic experts hired). If foreign experts are hired, the maximum support will be determined based on the foreign expert hiring fees approved by the head of the competent authority for the Program, projects, and tasks.

2. Maximum support up to 70% of the costs:

a) Organizing seminars to promote domestic and foreign investment in the supporting industry sector.

b) Organizing domestic trade fairs to connect supporting industries: Renting exhibition space and design, setting up booths; service fees: electricity, water, sanitation, security, protection (if not included in rental fees and booth setup costs); management costs of the fair organizer; overall decoration of the fair; opening and closing ceremonies: invitation letters, reception, decoration, sound, lighting; organizing seminars: hall rental fees, equipment costs; other expenses (if any).

The maximum support for this content is 12 million VND per participating unit.

Domestic specialized trade fairs connecting supporting industries must have a minimum size of: 200 standard booths (3m x 3m) and 100 participating enterprises when organized centrally; 150 standard booths and 75 participating enterprises when organized locally.

c) Organizing and participating in overseas trade fairs to connect supporting industries: Renting exhibition space and design, setting up booths; overall decoration of the Vietnamese area (including the national booth if any); organization costs for opening ceremonies (if it is a Vietnamese-only fair): invitation letters, reception, decoration, sound, lighting; organizing seminars: hall rental fees, equipment, decoration, sound, lighting, interpretation, security, reception, drinking water, materials, speakers; product demonstrations: venue rental, stage design and decoration, sound, lighting, equipment, performers, hosts, interpreters; travel expenses for program organizers; other expenses (if any).

The maximum support for this content is 150 million VND per participating unit.

Overseas specialized trade fairs connecting supporting industries must have a minimum size of: 7 standard booths (3m x 3m) and 7 participating enterprises.

d) Costs for organizing outbound trade missions and investment promotion: One round-trip air ticket per participating unit; organizing business seminars: hall rental, equipment, invitation letters, interpretation, materials; publicity and promotion, inviting guests to attend and transact business; travel expenses for program organizers; other expenses (if any).

The maximum support for this content is: 28 million VND per unit participating in commercial transactions in the Asia region; 42 million VND per unit participating in commercial transactions in the Europe, Africa, Australia, North America, West Asia regions; 70 million VND per unit participating in commercial transactions in the Central America and Latin America regions.

Outbound trade missions must have a minimum of 7 participating enterprises.

đ) Supporting enterprises in promoting and registering their brand for supporting industry products; maximum support not exceeding 50 million VND per brand.

e) Publicity and promotion through mass media about supporting industry activities in newspapers, online news, radio, television, publications, and other information dissemination methods. The maximum support for this content is 70 million VND per promotional topic.

Article 7. The maximum support rate of 100% shall be applied to assist enterprises in implementing management systems that meet the requirements of global production chains in business administration and production management.

1. Assessing the capacity and needs for applying standards and management systems in production at enterprises.

a) Costs for researching and developing evaluation criteria and indicators.

b) Evaluating enterprise capacity: The maximum level of support shall not exceed seven million dong per enterprise.

c) Workshops to announce evaluation results.

2. Developing programs and organizing training for enterprises: Costs for program development; printing materials, textbooks directly serving classes; office supplies; drinking water; renting equipment, conference halls, and facilities serving classes; practical class materials (if any); costs for training instructors and technical operation guides, travel expenses, accommodation fees, and interpreters (if any); costs for trainees: Supporting meal, travel, and accommodation expenses (if any); opening and closing ceremonies, printing certificates, medical expenses for classes, and awards.

3. Evaluating and recognizing enterprise management and production management systems.

a) For enterprises with an average number of employees participating in social insurance not exceeding 200 people and meeting one of the two criteria (total capital not exceeding one billion dong or total revenue of the preceding year not exceeding three billion dong): The maximum level of support shall not exceed two hundred million dong per enterprise.

b) For enterprises not falling under the provisions of point a, Clause 3 of this Article: The maximum level of support shall not exceed one hundred and fifty million dong per enterprise.

Article 8. The maximum support rate of 70% shall be applied to assist in enhancing the quality of human resources to meet the requirements of industries producing supporting industrial products.

1. Researching and assessing the demand for human resources of supporting industry enterprises.

2. Costs for organizing training, upgrading, and training sessions.

a) Target group: State administrative managers; management and technical staff of enterprises producing supporting industrial products.

b) Content of costs: Costs for program development; printing materials, textbooks directly serving classes; office supplies; drinking water; renting equipment, conference halls, and facilities serving classes; practical class materials (if any); costs for domestic training instructors, foreign experts, and technical operation guides, travel expenses, accommodation fees, and interpreters (if any); costs for trainees: Supporting meal, travel, and accommodation expenses (if any); other costs: Opening and closing ceremonies, printing certificates, medical expenses for classes, and awards.

Article 9. Supporting research and development, application, transfer, and technological innovation in experimental production of components, parts, raw materials, and materials.

1. The maximum support rate of 100% shall be applied to the following contents:

a) Costs for establishing standards and regulations: Outsourcing labor costs for direct staff and consultants; hiring consulting experts; purchasing materials, raw materials, standards, processes, technical documents, technology copyrights, patents; seminars; document translation; survey work.

b) Costs for introducing and disseminating certain production technology processes and technical requirements for supporting industrial products to supporting industry enterprises in Vietnam.

c) Supporting the purchase of main testing equipment for laboratories to enhance the capabilities of supporting technology development centers according to projects approved by the Ministry of Industry and Trade.

2. The maximum support rate of 70% shall be applied to the following contents:

a) Costs for hiring domestic and foreign experts to directly support domestic supporting industry enterprises.

b) International cooperation costs in training, research, and technology transfer: In accordance with current regulations on travel expenses for state civil servants traveling abroad for short-term assignments funded by the state budget.

3. The maximum support rate of 50% shall be applied to the following contents:

a) Supporting research and application, experimental production, and technology transfer for enterprises and research institutions in the field of supporting industry.

b) Supporting supporting industry enterprises to improve and innovate technology and conduct experimental production.

c) Supporting enterprises to adopt advanced and modern technology transfers; purchasing copyrights, patents, software; hiring foreign experts and training human resources.

d) Supporting research and experimental production projects of supporting industrial products. Partially funding research costs for organizations and individuals who have invested in researching, developing, and applying technologies to production with economically effective applications.

đ) Supporting the establishment and improvement of criteria to evaluate enterprises on technology and supporting industrial products.

Article 10. The maximum level of support up to 100% shall be applied for the construction and publication of information on supporting industries annually.

1. Expenses for surveying, building, and updating databases of enterprises producing finished products and supporting industrial products in the fields of textiles and garments, leather and footwear, electronics, automobile manufacturing and assembly, and mechanical manufacturing (including key mechanical products), high-tech industry.

2. Expenses for data entry, creation of hypertext pages, electronic information based on existing data, and digitalization of information.

3. Expenses for purchasing databases and providing supply and demand information about the market for supporting industrial products and policies on supporting industries.

a) Costs for purchasing materials.

b) Costs for investigation, surveying, and compiling materials.

c) Costs for publishing and distribution.

d) Other expenses (if any). The maximum level of support for this content is VND 2 million per unit registering and receiving information.

4. Expenses for publishing publications on supporting industries, operating websites on supporting industries.

5. Organizing seminars: Costs for renting conference halls, equipment, decoration, sound, lighting, interpretation, security, reception, drinking water, documents, speakers.

Article 11. Expenses for managing programs and projects on supporting industries

1. The management agency of supporting industry funds may use up to 1.5% of the annual supporting industry funds allocated by the competent authority to support the construction of programs and projects, inspection, supervision, acceptance: Hiring experts, labor (if any); overtime pay according to regulations; office supplies, telephone, postal services, electricity and water; travel expenses, fuel, rental cars for inspection (if any); costs for evaluation, selection, and acceptance of supporting industry programs and projects; other expenses (if any). The content and budget are approved by the competent authority.

2. For organizations implementing supporting industry service activities: Units implementing supporting industry projects can allocate up to 3% of the project budget for management, direction, inspection, supervision, and other expenses (if any). For projects in areas with difficult socio-economic conditions and extremely difficult conditions, as defined by the Government, the allocation can be up to 4% of the project budget.

Article 12. General expenditure levels for supporting industry activities

The general expenditure standards for certain expense items specified in this Circular shall be implemented according to related documents attached as Appendices. When the documents cited in this Circular are amended, supplemented, or replaced, they shall be applied according to the amended, supplemented, or replacement documents.

Article 13. Expenditure levels for supporting industry activities at local levels

1. Based on the provisions of Decision No. 10/2017/QĐ-TTg and the guidance on support levels in this Circular, the People's Committee of the province shall establish a Regulation on managing development funds for local supporting industries and specify specific expenditure levels for local supporting industry development activities in accordance with the local budget balance capacity.

2. Based on the local budget capacity, the People's Committee of the province shall submit to the People's Council at the same level to define other support contents and forms outside those stipulated in this Circular that are suitable to the actual conditions of the locality.

Article 14. Establishment and Allocation of Budget Estimates

1. For funds to implement the Central Program.

a) Annually, the Ministry of Industry and Trade shall prepare the budget estimate for the program funding the development of supporting industries, incorporating it into the Ministry's overall budget estimate and submitting it to the Ministry of Finance for consolidation and presentation to the Government in accordance with regulations.

b) Based on the approved budget estimates, the Ministry of Industry and Trade shall approve the Program and allocate detailed funding according to each project, task, and leading unit, sending these allocations to the Ministry of Finance for review in accordance with laws on state budget management.

2. For funds to implement the Local Program.

a) Annually, the Department of Industry and Trade shall prepare the budget estimate for the local supporting industry program, incorporating it into the Department's overall budget estimate and submitting it to the Department of Finance for consolidation and presentation to the provincial People's Committee in accordance with current regulations.

b) Based on the allocated budget estimates, the Department of Industry and Trade shall detail the allocation of funds for implementing the local supporting industry development program according to each project, task, and leading unit, sending these allocations to the Department of Finance for review in accordance with laws on state budget management.

c) Regarding the establishment, allocation, and assignment of budget estimates for local supporting industry funds at the district and commune levels within the province, this shall be regulated by the provincial People's Committee in accordance with the organization of local supporting industries.

Article 15. Implementation of Budget Estimates

1. Based on the budget expenditure estimates assigned by the competent authority, units shall submit their documentation and vouchers to the State Treasury at the transaction location for control purposes.

2. The State Treasury shall implement control and payment of expenditures for tasks and programs related to the development of supporting industries in accordance with Circular No. 161/2012/TT-BTC dated October 2, 2012, issued by the Ministry of Finance on the system of control and payment of state budget expenditures through the State Treasury, and Circular No. 39/2016/TT-BTC dated March 1, 2016, amending and supplementing certain provisions of Circular No. 161/2012/TT-BTC, and other supplementary, replacing documents (if any). Specifically, advance payments for projects and tasks of supporting industries based on implementation contracts shall not exceed 50% of the total support funding for developing supporting industries based on implementation contracts and shall not exceed the approved annual budget estimate.

Article 16. Accounting and Settlement Work

1. Units directly using funds from the Program for the Development of Supporting Industries shall be responsible for accounting and settling expenses incurred in carrying out supporting industry tasks under the Program into category 280 item 309 - supporting industry activities, in accordance with the corresponding chapter of the State Budget Classification.

2. For supporting industry tasks implemented by units through contracts with the leading agency, the documentation serving as the basis for settlement and finalization shall be retained by the leading agency, including: the implementation contract along with the detailed budget estimate approved by the competent authority; the acceptance certificate, which includes the acceptance of the quantity of work completed using the committed investment funds (if applicable); the contract termination; the authorization to pay or payment voucher, and other relevant documents as stipulated by the Ministry of Industry and Trade. Documentation of expenditures by units directly implementing supporting industry tasks shall be retained by those units.

3. Units directly using supporting industry funds must settle the funds used in the year with the Ministry of Industry and Trade (for central supporting industry funds) or the Department of Industry and Trade (for provincial supporting industry funds). The annual settlement reports of the Ministry of Industry and Trade and the Department of Industry and Trade shall be submitted to the financial authorities at the same level for review. The procedures for preparing, forms, submission deadlines, and review of settlement reports shall be carried out in accordance with current regulations. For the settlement of local supporting industry funds at the district and commune levels within the province, this shall be regulated by the provincial People's Committee in accordance with the organization of local supporting industries as stipulated by the State Budget Law and guiding documents.

Chapter III
IMPLEMENTATION

Article 17. Inspection, supervision, information reporting

1. The Ministry of Industry and Trade, the Department of Industry and Trade shall be responsible for coordinating with the financial agencies at the same level to conduct regular and spot inspections; assess the implementation of tasks and objectives of support industry projects to ensure that public funds are used for their intended purposes, economically, and effectively.

2. The Ministry of Industry and Trade shall be responsible for periodically tracking and evaluating reports.

3. The People's Committee of the province shall be responsible for periodically tracking, evaluating, and reporting every six months to the Ministry of Industry and Trade on the activities of the support industry in the locality.

Article 18. Implementation Organization

1. This Circular takes effect from May 11, 2018.

2. During the implementation process, if there are any difficulties, organizations and individuals are requested to reflect them to the Ministry of Finance for research and appropriate amendments and supplements./.